It’s make up or euro break-up, says Cameron

British Prime Minister
David Cameron
appeared to cast doubt on the future of the euro during prime minister’s questions when he said the euro zone “either has to make up or it is looking at a potential break-up".

He told MPs: “That’s the choice they have to make and it is a choice they can’t long put off." His aides said later he had not made a mistake with his remarks, which Labour pounced on, accusing him of stoking fears of a break-up.

Mr Cameron’s words followed a stark warning from Bank of England governor
Mervyn King
, who said Britain’s recovery was being hampered by a euro zone that was “tearing itself apart" and referred to a “storm heading our way from the continent".

Mr Cameron’s open questioning of the euro’s future seemed to be at odds with comments made two days ago by Britain’s Chancellor,
George Osborne
. He criticised those such as the German Chancellor,
Angela Merkel
, who raised speculation about Greece’s continuing membership of the euro. He said in Brussels: “It’s the open speculation from some members of the euro zone about the future of some countries in the euro zone which I think is doing real damage across the whole European economy."

Aides said Mr Cameron had discussed his comments in advance with Mr Osborne, but stressed he was not predicting the break-up of the euro. “He would obviously rather it was ‘make up’. There would be huge implications for us if it was the ‘break-up’ option," said one.

Aides declined to say whether the UK believed Greece should stay in the euro, insisting that was a matter for the Greek people to decide.

Mr Cameron revealed he would be holding a bilateral meeting with the new French President, François Hollande, ahead of a full G8 summit this weekend in Washington.